Taiwan Stocks Top 37,000 for First Time as AI Momentum Lifts Multiple TISA Funds to Record Highs

The United States, China, Japan and Hong Kong have traditionally led global stock-market capitalization rankings, while India long held fifth place on the strength of domestic demand and corporate growth. Taiwan has now surpassed India for the first time, largely because of TSMC's dominance in advanced manufacturing processes and the AI chip supply chain. The milestone also underscores the heavy concentration of Taiwan's market value in its leading semiconductor company.

Based on 2026 data, Taiwan's stock market has risen to fifth globally and trails South Korea by only about $100 billion in market value. TSMC shares have gained 45% this year, making the company the main driver of the index. Taiwan's Financial Supervisory Commission has also eased the cap on funds' investments in a single stock, further channeling capital toward TSMC and semiconductor shares.

The AI data-center construction boom continues to lift demand for high-performance chips, server power supplies and advanced manufacturing processes, making Taiwan's supply chain a magnet for investment because it spans chip design, foundry services and power management. MediaTek is moving into chip design for Google's TPUs, Delta Electronics has built a strong position in AI server power supplies, and TSMC is benefiting as major AI customers increase orders.

Taiwan shares jumped more than 1,200 points at one stage in early trading on July 20, reaching a record 44,750. MediaTek and Delta Electronics both hit their daily limit-up levels, while TSMC rose NT$55 intraday. Broad gains among AI chip and server supply-chain companies were the main force driving the benchmark index above its previous high.

Global cloud providers are increasing capital spending on AI data centers, boosting Taiwan’s foundry, advanced-packaging and server supply chains. TSMC accounts for more than 40% of the market’s value, making Taiwanese equities a key proxy for international investors seeking exposure to AI hardware. The International Monetary Fund estimates Taiwan’s 2026 GDP at $977 billion, yet its stock market has overtaken that of the UK, whose GDP is about $4.3 trillion, underscoring Taiwan’s industrial clout.

Data compiled by Bloomberg showed the combined market capitalization of Taiwan’s major listed companies had risen to $4.14 trillion, or about NT$131.6 trillion, as of April 15, 2026. That surpassed the UK’s roughly $4.09 trillion and lifted Taiwan to seventh place globally. The benchmark Taiex closed at a record 37,132.02 on April 16, up 409.88 points, while TSMC forecast full-year revenue growth of more than 30% in U.S. dollar terms.

TSMC’s advanced manufacturing technology and global demand for AI chips have made it the main force behind Taiwan’s stock market rally past 40,000 points. The Financial Supervisory Commission is also advancing the “TSMC clause,” which eases limits on ETFs’ holdings of a single stock. The change reduces regulatory obstacles for funds tracking large index heavyweights, making passive inflows an important source of market support.

TSMC shares recently reached a record high and are moving toward NT$2,330 apiece, helping the weighted index break above 40,000 points. The impact of ETF portfolio adjustments continues to build. The market will look to corporate fundamentals and earnings data due in May to gauge whether the rally fueled by AI enthusiasm and passive buying can continue.

Taiwan’s benchmark stock index has continued to climb on enthusiasm over AI investment, with heavyweight shares including TSMC and Delta Electronics providing the main momentum. Gains have spread to printed circuit board and passive-component stocks, showing capital flowing beyond chip manufacturing into power systems, components and equipment supply chains. The move highlights the AI supply chain’s influence on the market’s capitalization and investor sentiment.

Taiwan stocks jumped 927 points in the latest session to close at 34,700, setting records both intraday and at the close while also establishing several other market highs. TSMC and Delta Electronics led the advance, while printed circuit board and passive-component shares posted strong gains. However, the available event data did not provide the exact trading date, turnover or closing prices of individual heavyweight shares.